LONDON, March 26, 2025 — Gold prices surged to $3,000 per ounce for the first time in history on Friday, driven by growing demand for safe-haven assets as investors grow increasingly concerned about President Donald Trump’s tariffs and global geopolitics.
The price peaked at $3,005 before easing slightly to $2,994 by 9:04 a.m. ET.
Jason Hollands, managing director at Evelyn Partners, a UK wealth management firm, called gold “the panic asset of choice” and explained that the recent price increase reflects “the extreme uncertainty surrounding the global trade system due to the Trump administration's erratic and aggressive tariff policies and the retaliatory actions that have followed.”
On Wednesday, the US imposed 25% tariffs on all steel and aluminum imports, marking the latest in the Trump 2.0 era of duties, which provoked quick countermeasures from both Canada and the European Union.
Trump escalated tensions further on Thursday by threatening to impose a 200% tariff on EU alcoholic beverages unless the EU lifted a 50% tariff on US spirits, which was introduced just the day before.
His trade policies have been marked by inconsistencies and delays, creating uncertainty and paralyzing businesses unsure of whether to hire or invest.
This growing unpredictability is heightening concerns about a potential global economic slowdown.
The ongoing war in Ukraine is another factor supporting gold prices.
“Russia’s refusal to accept the US-proposed 30-day ceasefire in Ukraine has reignited geopolitical instability,” said Viktoria Kuszak, a research analyst at Sucden Financial, a trading firm.
On Thursday, Russian President Vladimir Putin questioned the US-brokered ceasefire proposal, setting harsh conditions and demanding concessions from Kyiv, despite his stated support for a truce in principle.
The prolonged conflict has also helped bolster gold prices over time.
Trevor Greetham, a senior investor at Royal London Asset Management, pointed out that gold prices have risen by about 60% since Russia’s 2022 invasion of Ukraine. “Central banks, including the People’s Bank of China, have been increasing their gold reserves to avoid the risk of having foreign assets seized, as was the case with Russia,” he explained.
Additionally, a weakening of the dollar has provided further support to gold prices, according to Hollands at Evelyn Partners. Since gold is priced in dollars, a weaker US currency has made it more attractive to buyers outside the US.